NBC May Seek Affiliates’ Help in Payments for AFC Telecasts

NBC, in a move to help defray the cost of its new National Football League television contract, plans to ask some of its affiliates to assume part of the burden.

The plan is significant because it could encourage ABC and CBS to adopt similar schemes to help cover huge sports broadcast fees. It may also convey the impression to sports leagues that there is more money available to pay for large contracts recently negotiated.

Earlier this month, NBC agreed to pay $752 million in a new four-year contract to continue showing the NFL’s American Conference games, an increase of 56% over the previous contract. Although this is the smallest increase of the five new NFL television deals, it was still large enough to make it unlikely that the network can turn a profit.

The three networks have collectively paid $2.7 billion to renew NFL contracts in a bidding frenzy to keep the games away from cable, which, unlike the networks, can charge viewers to watch the games or pass the costs along in higher subscriber fees.

NBC-TV President Pier Mapes, reached in Atlanta at an industry convention, confirmed that NBC planned to ask some of its affiliates to help out with the rights costs but declined to give further details.

“This is between us and the franchise cities,” said Mapes. “We are going to quietly negotiate what we think is a fair share for an expensive transaction.”

Mapes did say, however, that only affiliates in AFC franchise markets would be approached and that most of the approximately 210 network affiliates would not be involved.

Sources said that NBC is estimating an advertising shortfall of as much as $130 million over the life of the new NFL contract. With the network’s own seven television stations “giving back” to the network about $80 million, the shortage would be reduced to $50 million. The balance would have to be made up by other NBC affiliates.

“I told NBC I don’t think this plan is proper,” said Tom Goodgame, president of Group W Television, owner of NBC affiliate WBZ-TV in Boston, which carries New England Patriot games.

“The Patriots do not sell out, and we don’t make any significant money off of it,” added Goodgame. “NBC went ahead with their bid, and they should pay for it.”

Goodgame thinks, however, that NBC will be forced to cut compensation to all affiliates, since those stations in AFC markets will not in themselves be sufficient enough to cover the shortfall. NBC’s “only recourse is to cut it across the board,” he said.

It is unlikely that NBC affiliates will pay the network directly. Because of the complicated relationship between the network and its affiliates, the difference might be made up by cutting the payments the network makes to its affiliates to carry programming--called comp in the trade--or by reducing the number of local commercial spots it allocates to stations in AFC markets.